The global blockchain technology market is expected to grow at a CAGR of 61.54 percent until 2021, according to Beroe Inc, a procurement intelligence firm. Blockchain is designed to be secure, reliable, transparent, highly resistant to outages, auditable, and efficient, helping decentralization of technology and decrease of bureaucracy.
The blockchain technology market is driven by its applications in cryptocurrency, distributed cloud storage distributed asset ledger, decentralized notary, smart contracts, and decentralized exchanges. Major industries currently using blockchain technology include BFSI (Banking, financial services, and insurance), healthcare and pharmaceuticals, logistics, luxury goods, art and music, and voting.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
Specifically, in the healthcare (HC) industry, the impact of blockchain technology is considerable, with a 57 percent ability to transform the industry, 48 percent ability to eliminate non-value generating processes, 45 percent ability to heighten data security & integrity and 25-30 percent cost saving potential in sales & marketing.
The existing business models followed by industries are vastly different from the new distributed ledger technology. Therefore engaging with all the entities in the entire ecosystem in any industry such as regulators, bureaucracies, lawyers, auditors, research organizations, suppliers and buyers, etc, is a daunting task. This serves as a challenge to the widespread implementation of blockchain.
- With blockchain technology, any agreement can be converted to a smart contract, which would not require intermediaries to get the contract terms evaluated. Smart contracts are easy to program and replace paperwork with automatic execution of the obligations.
- The distributed time-stamping blockchain technology can play an important role in the supply chain management of industries; by ensuring products have the right ingredients.
- Creating an identity on the blockchain makes it easier to manage every member of the organization, giving better control over who has access to what information, eliminating the risk of counterfeit identification.
- The immutable nature of blockchain makes it ideal to be used as a proof of transfer of any digital asset or proof of process. Keeping track of the steps for regulation helps create an audit trail for regulatory authorities to verify compliance.
- The technology of blockchain may impact the profit drivers for certain businesses, for example, businesses like banks realize huge incomes on financial transactions, so if the transactions become hassle-free and instantaneous with the use of blockchain technology, the earnings of banks would reduce.
- Blockchain is slowly making inroads into sectors other than finance, especially into pharmaceuticals and healthcare, however, most of the blockchain applications are not ready for enterprise-wide deployment.
The research methodology adopted for the report included:
- Experts with twenty years of domain experience
- Interaction with buyers
- Inputs from supply chain partners
Using a proven database and adding a blockchain layer with a distributed database model, user validation, and smart contracts on top of it will help in added control, asset tracking, providing an additional level of security and change in how organizations manage and record data. Through this process data will be secure, easily accessible and more transparent, boosting compliance.